Managed Care Stocks Show Strength, Aided By ObamaCare

Health care insurers are showing strength, with a number of stocks at or near buy points, amid better-than-expected earnings.

In just three weeks, the Medical-Managed Care group has jumped to No. 28 from No. 162, according to Thursday's IBD, amid rising ObamaCare enrollments.

Centene (NYSE:CNC) leads the 12-stock group with a Composite Rating of 98. It's just above a 67.94 buy point of a long consolidation. Centene gapped up 12% April 22 after reporting a 93% jump in Q1 profit to 79 cents a share, far above views. Revenue climbed 37%, the latest in a long string of strong gains.

Meanwhile,Humana (NYSE:HUM) is trying to clear a 120.03 buy point of a cup-without-handle base.

On Thursday, Oppenheimer and Bank of America raised their price targets on the stock. Humana on Wednesday said it expects revenue to grow this year after it received 700,000 applications from individuals to enroll in its ObamaCare plans. That will soften the blow from government funding cuts to Medicare Advantage for seniors.

Meanwhile, Humana reported Q1 earnings of $2.35 a share, down 7% from a year ago but well above views. Revenue rose 12% to $11.7 billion, the biggest gain in years.

Aetna (NYSE:AET), another top stock in the group, is working on a flat base with a 76.81 buy point. It posted strong profit and sales growth in the latest quarter, helped by its $6.9 billion acquisition last year of Coventry Health Care and a jump in ObamaCare enrollments.

Elsewhere in the group, WellPoint (NYSE:WLP) is just above a buy point, Molina Healthcare (NYSE:MOH) is trying to clear a long consolidation and Health Net (NYSE:HNT) is in buying range after clearing a 35.80 flat-base entry. On Thursday, Susquehanna raised its price target on Health Net to 45 from 40, citing strong ObamaCare enrollments.

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03/17/2015 06:25 PM ET

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